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Owner Update “Question of The Month”
Q : How does TMHA calculate the amount of subsidy paid for each family?
A: This is a confusing issue to understand because the amount varies with each family.
Amount of subsidy is dependent on a number of factors such as family size, family income and
deductions, the unit rent, and the type of utilities and who pays for them – tenant or owner.
The amount of subsidy is first of all dependent on the Payment Standard for the family.
The Payment Standard is the bedroom size amount that is supposed to represent the monthly rent,
including the cost of utilities (except telephone and cable), that must be paid in our housing
market to rent privately-owned, decent, safe and sanitary housing of an average type.
The Payment Standard for the family is determined by the number of people in the family and
the family make-up.
Current Payment Standards are:
BR size:
| 0 | 1 | 2 | 3 | 4 |
| 369 | 431 | 569 | 720 | 742 |
To get the subsidy amount, TMHA verifies the monthly income for the family,
and applies any deductions they may be eligible for to get the Monthly Adjusted
Income (MAI). Then TMHA calculates 30% of the Monthly Adjusted Income to get
the Total Tenant Payment (TTP). The Total Tenant Payment (TTP) is subtracted
from the applicable Payment Standard. The resulting number is the Maximum
Subsidy which can be paid by TMHA on behalf of the family.
Example:
Family has 2 bedroom Payment Standard of $569.
Family’s Total Tenant Payment (TTP) amount - $200.
The Maximum Subsidy is $369
Next, the Maximum Subsidy is applied to the rental unit data. When TMHA calculates the amount of
assistance, we always consider the value of the utilities not included in the rent. In our example
the unit’s heat, cooking, and hot water heating are gas, and are paid by the tenant. The tenant
also pays the electric and trash bill. The owner pays the water and sewer bill, and provides the
unit stove and refrigerator, and includes the cost of these in the amount he sets for rent.
In this example, the owner has set the rent at $475. TMHA estimates that the monthly cost of
utilities paid by the tenant as $127.
Next, TMHA calculates the Gross Rent by adding the rent of $475 to the Utility Estimate of $127 to get
a Gross Rent of $602. Since the Maximum Subsidy of $369 is less than the rent, it will be applied
to the rent and paid monthly to the owner in the form of aHousing Assistance (HAP) Payment .
The remainder of the rent ($106) will be paid by the family directly to the owner each month.
The family is also responsible for paying the utilities each month that are not included in the rent.
Sometimes the calculation works out that the Maximum Subsidy is more than the rent for the unit. In our example,
let’s say the Maximum Subsidy works out to be $500. In that case TMHA would apply $475 of the subsidy to the
$475 rent, thereby sending a HAP payment to the owner for all the rent. The remaining $25 of subsidy would
be sent to the tenant family every month in the form of a Utility Allowance Payment (UAP) to help the family
pay for utilities.
Lead-Based Paint Training Offered:
Cuyahoga Community College, in collaboration with Mahoning Healthy Homes is offering a 1-day course on Lead-Safe Work Practices
Renovation/Remodeling on Saturday, July 28, 7:45 am – 5 pm for a reduced cost of $50.
This course will train participants in procedures for working on and around lead-based paint without producing dust that could be
hazardous to young children. Successful completion of the course qualifies the trainee to perform operations and maintenance,
renovation, remodeling and rehabilitation activities in federally-assisted housing, such as the TMHA Voucher program.
Course number is CRN# 54086. To register, call Tri-C at 216-987-3075.
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